Nestlé Begins South Africa Layoffs as Part of Global Overhaul
(Bloomberg) — Nestlé SA has begun issuing retrenchment notices to more than 400 employees in South Africa as part of a global overhaul that reorganizes the company around four core divisions, according to people familiar with the matter.
At least 100 employees have begun severance talks, the people said, who asked not to be identified because the information is private. The process marks the start of a broader restructuring of Nestlé’s Africa operations, with further layoffs expected, including in its East African business, the people said.
The global food giant, under new Chief Executive Officer Philipp Navratil, is cutting about 16,000 jobs, about 6% of its workforce, as part of a sweeping reorganization that includes divesting non-core brands and businesses.
It has agreed to sell its remaining ice cream operations, including brands such as D’Onofrio, Real Dairy, Parlour and Lafrutta, to Froneri, its joint venture with PAI Partners.
The maker of Nespresso coffee and Purina Cat Chow said workforce reductions would vary by country. Transformation plans are being developed at a local level in line with each market’s business needs and structure, and in accordance with local requirements, a spokeswoman said in response to questions, adding that the company could not comment on the number of jobs that may be cut while consultations are ongoing.
“We remain firmly committed to playing our part in the development of the local and Africa’s economy as a whole,” the spokeswoman said, “We are positive that we are paving the way for long term, sustainable future on the continent.
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